Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

(1) On 02/1/2022, Yabba Dabba Do Snow Removal purchased a snow plow truck for $80,000 by borrowing $60,000 from Bedrock Bank and paying the remaining

(1) On 02/1/2022, Yabba Dabba Do Snow Removal purchased a snow plow truck for $80,000 by borrowing $60,000 from Bedrock Bank and paying the remaining $20,000 in cash. (2) On 02/1/2022, Yabba Dabba Do Snow Removal received a prepayment of $300 from a new client for snow removal services to be rendered during February and March 2022 (3) On 02/1/2022, Yabba Dabba Do Snow Removal paid monthly rent on its office space, which amounted to $1,600. (4) On 02/09/2022 Yabba Dabba Do Snow Removal received a Dominion Energy invoice $1105 and was paid on the day received. (5) On 02/15/2022, Yabba Dabba Do Snow Removal purchased office supplies for $3,500 using a line-of-credit that was established with the vendor. (6) On 02/20/2022, Fred secured a 90-day note payable from Bedrock Bank, borrowing $30,000 in cash to cover operating expenses for the next three months. (7)On 02/22/2022, Barney Rubble invested $50,000 of his personal funds into the company in exchange for additional common stock. (8) On 02/24/2022, Yabba Dabba Do Snow Removal provided snow removal services to various clients, generating $12,500 in service revenue. The company received $5,000 in cash and expects to collect the remainder within 30 days. (9) On 02/25/2022, Yabba Dabba Do Snow Removal paid its annual liability insurance premium of $5,500, covering the period from February 1, 2022, to January 31, 2023. (10) On 02/28/2022, Yabba Dabba Do Snow Removal paid salaries to its employees, totaling $7,200, for the period of 02/01-02/21. (11) On 02/28/2022, Yabba Dabba Do Snow Removal paid dividends of $500 to their investors.

(12) On 02/28/2022, Yabba Dabba Do Snow Removal was notified by their accountant that their year-to-date income tax liability is $1891. They will pay the tax liability on 4/15/2022.

For each transaction, please indicate the impact on the accounting equation

INSTRUCTIONS: Using the transactions given in the instructions, please indicate the impact on the Acocunting Equation. Please indicate the account impacted and if the category (Assets, Liabilites, Stockholder's Equity) increased or decreased
Transaction Assets = Liabilities + Stockholder's Equity
Example: Cash Increases Revenue Increases
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(10)
(11)
(12)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Global Financial Accounting And Reporting Principles And Analysis

Authors: Walter Aerts, Peter Walton

5th Edition

1473767121, 9781473767126

More Books

Students also viewed these Accounting questions